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Minutes 11-12-19 Minutes of the Community Redevelopment Agency Board Meeting Held in the Intracoastal Park Clubhouse 2240 N. Federal Highway, Boynton Beach, Florida on Tuesday, November 12, 2019, 6:30 P.M. Present: Steven B. Grant, Chair Mike Simon, Executive Director Justin Katz, Vice Chair Thuy Shutt, Assistant Director Mack McCray, Board Member Kathryn Rossmell, Board Counsel Christina Romelus, Board Member Ty Penserga, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:30 p.m. 2. Invocation The invocation was given by a member of the Bride of Christ Tabernacle Church. 3. Roll Call Roll call revealed a quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda .B. Adoption of Agenda Motion Board e er Penserga moved to approve the Agenda. BoardMember McCray seconded the motion. e motion unanimously passe . Legal6. A. Definition of a Joint Venture Agreement Kathryn 1 , Board Attorney, gave a short efinition of a Joint Venture ree s an agreement between two private parties to work together towards a common goal which can either be in the form of a corporation set up together separately or in the for of an agreement to work together through their existing corporations. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Board Member Romelus wanted the information provided toeducate the Board sothe Board could be more open-minded while exploring different projects. She supported partnerships and opportunities to occur between entities to foster partnerships to avoid the community feeling progress was occurring without their input or consent. Shethought the opportunity to for joint ventures with a developer is possible. The vision still needs to be created between the various entities and the Board does not have to play a role in the joint ventures at all. She thought language indicating the Board was looking for a developer willing to for a joint venture with interested local businesses or corporation could be included in RFPs, so the Board could equally disburse funds and allow for members of the community to actively playa part of a project. It out create equity in the community. She wanted open access so individuals will not feel left out of the process. Board Member McCray favored joint ventures, but noted the stake holders live in the community and their main concern is they are left out and the Board should listen to them first. ® Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented on the CRA Board on Agenda Vice Chair Katz had no disclosures. Board Member McCray disclosed he of a call from Tom Warake. Board Member Romelus of a call from him as well. Board Member Penserga disclosed he spoke with Michael Weiner about his properties. Chair Grant spoke with To Wark e and not Board Member Romelus put comments on Facebook regarding Ahe Family Dollar site. Chair Grant was quoted assaying there are private enterprises interested inthe site, but her was only one and it was the Ocean Breeze East site and he thought it was because the poster thought the CRA was of to buy the site for$1.2 million after speaking with Mr. Aiken. Chair Grant stated the private sector schools, including Charters do a much job than the government, but private schools are not equitable and that is why government may get involved to help disenfranchised areas improve economic development. it Grant felt the poster heard his comments as hearsay and did not know the information behind it when he said there was another interested party. It was through the Board's attorney when speaking with Mr. Aiken. it Grant commented Board Members can post items ahead of upcoming meetings before the agenda is published. He also read Board Member Romelus' comments earlier and the issue is he cannot comment tot public, where it is a one- sided view. He wanted to know if the Board iso with not posting their public views before the meeting. Vice it Katz favored all adhering to the law, which does prohibit them from providing their opinions tote public, similar to newspaper quotes. Posting opinions on social is out City activities complies with Sunshine. It is against Sunshine if another a Board Member engaged another Board Member in a dialogue. He spoke with 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 the City Attorney about the issue and it was fine as long as it is a public posting. Chair Grant explained the issue is Chair cannot comment on an item. Board Member McCray thought it was a gray area. He encouraged refraining from discussing hot topic items. He thought comments should be made after a meeting. 7. Announcements and Awards A. The 8th Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Recap Mercedes Coppin, Business Promotions and Events Manager, announced Pirate Fest had a great turnout despite rainy weather. A power point presentation of the October 26th and 27th event was viewed. Live Gauge software showed approximately 33K people attended. Staff used a ticketing system for children activities to calculate how many children participated in face painting and balloon art. Seven hundred and seven attendees completed an event survey, which revealed 56% of the event goers were first- time attendees. The majority of the attendees did not come from Boynton Beach, but 41% cane from Palm Beach County; 34% came from Boynton Beach; 20% were from outside Palm Beach County; and 5% came from outside of the state. Seventy percent of the attendees surveyed were female and 30% were male. The event budget was $336,250 with $44,500 spent on marketing. Staff received $10,500 in paid sponsorships and almost $60K in in-kind sponsorships. Vendor fees collected were over $17K and food and beverage vendors contributed $36,614. Staff tried to engage the community through costume contests, Treasure Hunt and the Mermaid Pageant. There were 38 unique craft retail vendors and 14 CRA merchants in the Enchanted Market. There were 100 volunteers for the event and the event enjoyed a continued partnership with Due South Brewing Company. Tracy Smith-Coffey, Marketing and Business Development, explained the CRA had a great marketing campaign this year. Captain Hook was featured in a lot of the marketing material. The event had printed marketing in the Gateway Gazette and staff partnered with the Sun Sentinel as a sponsor. Other ads were in the Delray newspaper, Neighborhood News, Coastal Angler. Staff distributed posters and postcards throughout the City and used Every Door mailers for the western community. A 30-second video advertisement shown at movie theaters was viewed. Screen ad shots shown in other theaters were viewed and staff undertook a strong social media campaign, reaching over 330K people. Exact details were contained in the meeting materials. iHeart radio advertising was again used this year. Photos are being uploaded to the CRA's Flickr account. There was brief discussion about billboard advertising. There is a billboard in Pompano Beach heading north on right had side travelling north by Copans Road. Board Member McCray travels to Broward and he did not see it. Board Member McCray also commented on the ADA parking. about parking and it was ADA and it was not right. Next time must be ADA complaint. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Board Member Peraser ga asked how many years the CRA used Live Gauge and what the attendance pattern showed. Ms. Coppin explained this year it decreased as a result of the weather. Average attendance has been between 30K and 60K people for the past three years. Last year the event drew just over 40K people and the first year they used their service, it drew just over 60K. Retail vendors pay a flat fee of $450 and food and beverage vendors pay a 25% commission on their sales. Ms. Coppin agreed to provide the household incoming highest percentage ranges. Chair Grant commented Florida Tackle indicated their walk-in traffic doubled since the event. He liked the concept of the Enchanted Market and was looking forward to next year. Board Member Romelus this would be good data to track information on SMOP to see their data and feedback during and after events like this. Ms. Coppin explained a feedback survey is sent tote vendors after each event. She was waiting for them to come back to present the results. Board Member Romelus thought the survey was not a good snapshot and asked if there was any way to incentivize them to take a survey. Ms. Coppin explained they had some awesome giveaways for the surveys. They changed the way they conducted the survey. This year they used iPads which helped staff. Staff only had three iPads at each information booth. She suggested next year allocating additional funding for more iPads to survey more people. There were over 1,000 surveys last year. Board Member McCray advised he will finish his comments out Pirate Fest after public comments. David Katz, 67 Midwood Lane, explained he attended Camelot Days in Vero Beach and other events and within the confines of Pirate Fest had to develop, staff did great job, but there were deficiencies concerning handicapped access. Handicapped parking was supposed to be in Bradley Miller's parking lot, which had 14 spaces and one that was enforceable. He contacted Ms. Con and she explained a police or service officer of ensure only handicapped individuals of park there. When he pulled up that day in a friend's van having the placard, there were two police cars parked there and four that had no placard. Three or four of the cars were from vendors. There was no policing and there were 14 spaces for an event that drew 33K people. He thought its the wrong message and there needs more handicapped parking or better policing of that parking lot. He explained one can only get a ticket if it is parked in a properly marked space. The other issue was the port-a-potties towards the Boynton Beach exit, but there were no handicapped port-a-potties that he saw and those that were there were not accessible because of the sidewalk and a dirt path. The area where thea ill s,just east of the railroad tracks should have something to allow wheelchairs to pass through. He not the Renaissance it received a Department of Justice complaint. Mr. Katz commented these must be addressed and suggested using an ADA Coordinator. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 .................. Board Member McCray commented the City left itself open to a lawsuit. Parking and space were problematic, but the City must comply. B. Ocean Breeze East Groundbreaking and Sara Sims Park Ribbon Cutting Ceremony Recap Ms. Coppin advised on teabove is occurred on November gth, but there was inclement weather. The Grant Opening and Ribbon Cutting for Sara Sims was cancelled and they want to reschedule. They were able to of a quick ground breaking for the Ocean Breeze East project. Board Member McCray commented some citizens feel the Ribbon cutting should be rescheduled sooner rather than later. C. Holiday Parade and Light Up the Park Event on Saturday, December 7, 2019 at 6-00 p.m. Ms.,Coppin announced teabove family-friendly event from 6 to 8 pm immediately after the Holiday Parade. The City will light up the Banyan Tree at about 6:30 p.m. Live music, food and beverages, children's activities and a meet and greet with Santa Claus will be available. D. 48th Annual Boynton Beach and Delray Beach Holiday Boat Parade on Friday, December 13, 2019 at 6:30 p.m. Ms. Coppin announced the Holiday Boat Parade on December 13th from 6:30 to 8:30 p.m. start at the Key Lime House, travel through Boynton Beach and finish at the C-15 Canal in Delray Beach. The CRA is accepting boat registration and interested boat owners can register online at wsw.catch boynton.co m. The Watch Party, at the Boynton Harbor Marina, will have music, children's activities and feature a visit from Santa Claus. 2 Georges will have food and beverages available for purchase at the outside bar and the CRA is partnering with the Marines Toys for Tots to accept toys the night oft event along the docks on the parade route and at the Marina. Two Georges will have valet parking. it Grant asked if the valet parking will cover the ADA requirements. Ms. Coppin explained there are designated spaces for handicapped parking. Board Member McCray saw an advertisement in the Delray paper for Calling all Captains, but it is a joint venture and it was not advertised as a joint venture. He asked is newspaper had advertisements for the event. Ms. Smith-Coffey explained in November the CRA issues a calling all boat captains and boat owners to participate int event and decorate their vessels. The December ad will be forte actual events. The December 15t ads would advertise the Light up the Park and the Holiday Boat Parade events. They are also advertised in Delray newspapers, the Neighborhood News, Gate Gazette, and staff undertakes a huge social medial campaign similar advertising forte Pirates Fest event. Board Member McCray requested a copy of the advertisements. Copies of the ad will be provided. E. 2019 IEDC/IDA Award Announcement 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Ms. Smith-Coffey announced the Boynton Beach CRA has been on a winning streak, ending the year having received 18 awards for marketing, social media, and economic development efforts. The CRA submitted entries to four industry associations that honor the hard work and recognize the organizations' accomplishments. Renee Roberts, Communications and Social Media Specialist, explained the International Economic Development Council Excellence in Economic Development Awards recognize the world's best economic development programs, partnerships, marketing materials and the year's most influential leaders. The awards honor organizations and individuals for their efforts creating positive community changes. The Boynton Beach CRA received the silver award in Business Retention and Expansion Initiatives for the Social Media Outreach Program (SMOP). Ms. Robert reviewed prior award recipients. Board Member Romelus inquired about the fees and learned the $700 was the application fees for all the award entry applications including FRA. Board Member McCray congratulated the CRA. Ms. Smith-Coffey explained the Boynton Beach CRA received the International Downtown Association Award for the Achievement of Excellence. During the 65th Annual Downtown Association Conference, the Boynton Beach CRA was recognized with the Downtown Achievement Award of Excellence in the Public Space Category for the completion of the Boynton Harbor Marina redevelopment project. She had a small PowerPoint of the different phases of development at the Marina, which the members viewed. The redevelopment included dredging the basin, new piers, new docks, electrical and water meters. It was completed in March 2010. The second .part of Phase I, completed in January 2011, included the light house entry feature and landscape, and Phase II, completed in December 2014, included the Marina Phase II Dockmaster building and ship store. Phase III, completed in January 2017, included the Marina Open Space project, green space and seating areas. It was noted the CRA demolished a small retail building, formerly used by the Splashdown Dive Shop. Board Member McCray commented with vision, they accomplished much. 8. Information Only A. Public Relations Articles Associated with the BBCRA B. Public Comment Log 9. Public Comments Susan Oyer, 140 SE 27th Way, distributed a handout and stated her family owned the building that houses Fashion Shops Boutique. She explained they are leaving closing for retirement on March 31, 2020, leaving two big bays, equal to six small bays, if they need 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 space on Ocean Avenue. She distributed a newspaper article regarding Palm Trees not being good for recycling and absorbing carbon. Ms. Oyer had long supported canopy trees, not Palm trees and she wanted to ensure canopies are at Ocean Breeze East. The article supported how canopy trees are better than Palm Trees. She had also spoken to some developers about it as there are a lot of beautiful canopy trees that could be saved. The day after Thanksgiving is the official Sister Cities signing installing Farindola Italy, as a Sister City to the City of Boynton Beach. The Commission was invited. No one else coming forward, Public Comments was closed. 10. CRA Projects in Progress A. CRA Economic & Business Development Update Mr. Simon gave a monthly update. The line item started on October 1St with a budget of $448K in overall grant funding for FY 19/20. If the agenda item passed this evening, and including the October meeting, the CRA will have given out $91,264, and the remaining fund balance for the rest of the year is $356,736. The CRA had a list of Business Tax Receipts issued in September and October 2019 B. Palm Beach County Housing Authority Project Update Mr. Simon advised they had several meetings with the Housing Authority, staff, the Executive Director, and the Property Management, Larry Greenberg, regarding CRA activities. The last meeting, on October 3rd, staff met with the Planning Department with Mr. Greenberg and another meeting, with Habitat for Humanity staff and the CDC staff with Mr. Greenberg to discuss the possibility and their interest in building affordable housing on those lots and the CRA's support of affordable housing. The end result was positive from Mr. Greenburg, but future action from the Housing Board regarding whether it could be pursued as a partnership or as a disposal, but the CRA was notified the Housing Authority is submitting the disposal application to Housing and Urban Development (HUD) and they should hear something in the next 90 to 120 days. Staff will keep the Board apprised of any progress. C. Historic Woman's Club of Boynton Beach (HWCBB) Project Update Thuy Shutt, Assistant Director, explained staff applied for a special category grant. The CRA applied for$400K with a match of$403L, and the CRA's application was not funded. There were 57 applications and most were second time applicants. The CRA scored 79, but needed 80 to be sent to the Legislature to be funded. What set the CRA's application back was the State Board does not like replacement of historic windows. They would like the windows restored. The building is a Mizner building and some windows are far gone and the State would like the windows restored or reconstructed versus replacing them with an impact resistant window. Staff indicated if they cannot restore it, it would be something they would like to have entertained because of the wind pressure to secure 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 the building envelop in case of a hurricane. Ms. Shutt explained the State Board was giving preference to buildings that were damaged by the storm and any kind of strengthening. She not some cities asked for large amounts to restore or fixing hurricane damaged buildings. The rankings and scoring were attached. Even though there were 30 or more applications afforded tot State Legislature, the Legislature determines how much to fund, depending on the Governor's priorities, so there is a lot of lobbying between the committee's results and the time the Governor signs the approval fort budget, A progress report for the ongoing or was attached occurred. The painter did a great job with very little oversight from staff. As of last Friday, the painters were cleaned and packed up and have met substantial completion. to will conduct the walk through in time for staff to file fort remaining $37K from the Solid Waste Authority. Tours of the building were also available. 11. Consent Agenda A. Financial Report Period Ending October 31, 2019 B. Approval of GRA Board Meeting Minutes ® October 7, 2019 C. Approval of Commercial Property Improvement Grant Program in the amount of $35,339.73 for Gua Go Corp. located in 500 Ocean at 510 E. Ocean Avenue, Unit 106 D. Approval of Commercial Rent Reimbursement Grant Program inthe amount of $15,924.96 for Guaca Go Corp, located in 500 Ocean at 510 E. can Avenue, Unit 106 E. Approval of Commercial Property Improvement Grant Program inthe amount of$25,000 for Beach House Salon, Inc. located at 1120 S. Federal Highway F. Approval of Commercial Rent Reimbursement Grant Program in the amount of$15,000 for Beach House Salon, Inc. located at 1120 S. Federal Highway Motion Board Member Romelus moved to approve the remainder of the Consent Agenda. Board Member Penserga seconded the motion. The motion unanimously passed. 12. Pulled Consent Agenda Items A. Financial Report Period Ending October 31, 2019 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Chair Grant pulled this it and inquired how much was int account. Vicki Hill, Finance Director, responded there was $13,947,604.68. Motion Board Member McCray moved to approve. Board Member Peraser seconded the motion. The motion unanimously passed. C. Approval of Commercial Property Improvement Grant Program in the amount of$35,339.73 for Gua Go Corp. located in 500 Ocean at 510 E. Ocean Avenue, Unit 106 Board Member McCray pulled this it and asked about the company. An unidentified woman explained they have been a mobile company for three years. The have participated in events throughout South Florida making home-made guacamole bowls with different fresh toppings, to bring healthy fast casual food to Ocean Avenue. In addition to the guacamole bowls, they will have sweet potato, protein and other options as well as drink, desert options ands oo ies. Mr. Simon explained the CRA has used the at CRA events and they are very good. Vice Chair Katz thanked the fors lectin Boynton Beach, commenting it was good to see businesses upgrading and coming to the downtown. D. Approval of Commercial Rent Reimbursement Grant Program in the amount of $15,924.96 for Gua Go Corp. located in 500 Ocean at 510 E. Ocean Avenue, Unit 106 Motion Board Member McCray moved to approve Items C and D. Board Member Romelus seconded the motion and welcomed them tothe neighborhood, The motion unanimously passed. ® Public Hearing 14. Old Business ® C nsi eraion and Discussion of the Purchase and Sale Agreement with Bride of Christ Tabernacle Church fort CRA Owned Property Located on NE '10th Avenue. Motion Vice Chair Katz moved to approve. Board Member Romelus seconded the motion. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Board Member McCray asked about the fence and learned the existing fence would be removed as part.of the new project. There will be access onto MLK Jr. Boulevard to enter their property. Board Member Romelus asked when the ground breaking would occur. Vera Marie Merna, representing the acting project manager for Bride of Christ Church explained an attorney in Boca has been representing them and they have been speaking with Mr. Grant. They discussed the starting date was extended because they could not meet the December 11th date. The Church would have a year to start, meaning to obtain the permit and would like to start as soon as possible. They have a lot to do and must get the plans to the City. Unity of Title was also needed. Chair Grant commented the reverter clause indicates the Church must commence construction within 12 months and asked for clarification of "commence construction." Attorney Rossmell explained it usually has a more physical impact, but the CRA can adjust the contract if more time was needed due to circumstances beyond their control. He would be happy to give then up to 24 months to break ground. The Board agreed. Board Member McCray was okay with extending the contract to two years. Ms. Merna also noted the attorney found two errors in the contract that were not corrected. One of them was just discussed by the Board, but the reverter language specified they had to be in possession. Ms. Merna agreed with the changes they suggested. Since it was listed as an exhibit, it did not have to be signed now. The contract they used was a more general contract. Any changes the Board makes would have to be re-signed. The Board could approve the contract subject to legal finalization for those two items. Chair Grant requested a motion to approve the property reverter clause to 24 months regarding commencement of construction from 12 months to 24 months, subject to legal approval. Vice Chair Katz agreed to amended his motion. Board Member Romelus seconded the amended motion. The motion unanimously passed. Board Member Romelus congratulated the Church and commented she viewed them as a community partner. She liked to see the Church being a community partner and having local businesses and non-profits expand the area they serve. She was touched the invocation was given in her native language. B. Consideration of a Purchase and Sale Agreement for the Property Located at 100 E. Martin Luther King Jr. Blvd fka Family. Dollar Mr. Simon explained the owner's response to the more recent offer approved in October offering to purchase the property for$1.2 million and a counter offer of$1.85 million. Chair Grant had spoken with the owner and explained the reason why Mr. Aiken was because of a settlement with of $1.3 million with Family Dollar. Part of the purchase and sale agreement specified he would get that, in addition to the $1.2 million the CRA would pay for.the property. It would cause 15% capital gains. Because his offer with Family Dollar was time certain, he took the $1.3 million, which would be considered ordinary income. The difference in tax at the 35% rate, which was $260K paid to the federal government, 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 rather than accepting the CRA's original offer. Mr. in was not trying to be punitive, it is because oft business taxes. it Grant did not believe the property was worth $1.85 million. A counter could be $1.46 million. it Grant noted the CRA has an offer to buy property south of Boynton Beach Boulevard fortes ount that had much older buildings. it Grant explained the CRA is trying to build wealth int community and to have equity, He advised when the CRA owns this, similar tot Historic Women's Club, the community owns it. It is not a private enterprise and the Board can make decisions to better the community. He recalled the Amerigas project, is was purchased above appraised value, It was not a property suitable for a business, but three years later, the property looks nice and out Florida Marine can show their boats. He did not want to it for private enterprise, unless it was the will of the Board. Board Member McCray felt the Chair discussing the issue with Mr. Aiken was akin to brokering and he preferred discussion occur through the Executive Director. The Board was not made aware the it would have a discussion with someone trying to sell property and he thought it was wrong. (Board Member Romelus left the dais at 7:44 p.m.) Vice it Katz agreed with Board Member McCray. If the property owner had relevant information as the basis for his decision, and they were in the process of potentially acquiring the property for in excess of$1.2 million, he should have shared it, if not publicly, by reaching out to individual board members. As to social media. Vice it Katz saw the Palm Beach Post article and commented on his post. He takes the concerns expressed seriously and commented if what Chair Grant conveyed from the property owner was true, it was awesome. His logic behind not purchasing the property was he questioned what else they could do with the money. (Board Member Romelus returned at 7:46 p.m.) The CRA already invested $800K to $900K on Family Dollar, and now, the discussion is maybe up to$1.85M more, If he would spend the money to enhance Centennial's project, or in general to acquire property to do something else, he of not spend the money to acquire a property they already redeveloped. He thought look at other properties. If you want to enhance the Centennial and MLK, the Bells property bifurcates the project. He would rather spend the on to get rid of them and make an offer to Bells to make the property additional retail space. His opposition to acquiring the Family Dollar, the CRA did its job. They gave land and grants equal to almost $1 M, which is now vacant, so if the CRA going to drop $1.85M, they should acquire the property in the middle of it, that would cause the CRA to build around it and not the property at the end of the project that is brand new. Board Member McCray provided some history and explained they had a restaurant on MILK Jr. Boulevard called Booker T's across from Bells. The building was constructed, the Police Department then used it as a sub-station and then a vote was taken to tear it down, 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 and it was left vacant. He thought the CRA keeps throwing good one after bad money. He agreed with Vice Chair Katz and did not think they needed to do anything with Family Dollar. He supported acquiring property and thought they needed to pursue acquisition of the Bell property. Chair Grant commented they have not heard out Mr. Bells property in a while. He was there a few times recently and the 10-minute and one-hour parking rules to MLK Jr. Boulevard is providing dividends. He wanted to obtain crime statistics to see if it would be is to invest or buy into the property moving forward. He requested the Board, if there was consensus, to have Mr. Simon speak with Mr. Bell and see what could be done, whether it is a purchase or if he wants additional funds to improve the business. Motion Board Member McCray so moved to direct the Executive Director to speak with the Bell family. Board Member Penserga seconded the motion. The motion unanimously passed. As to agenda its 14 B, Vice Chair Katz requested clarification that now use of the tax implications of the owner's decision, that the CRA's offer is not to match what the owner could make and out be about $1.4M to $1.5M. Chair Grant had calculated if the owner received the $1.3 million as ordinary income, it was $455K in federal income taxes and if the $1.3 million from Family Dollar was at the capital gains rate, it out be $195K. There was out a $260K difference between those numbers. The property pays about $40K in property taxes each year, and he estimated it out cost about $1 OK to maintain the property for a year. Subsequently, it out cost out $50K a year to keep the property vacant. The owner could wait a few years until the surrounding area improved, is does not help the economy in the area because the only commercial location is the Cherry Hill Mart, the MILK Quick Stop, the salon, Robinson's BBQ and a new janitorial service is locating where the barbershop was. He noted the property owner could of onto the property and later sell it for a lot more. Board Member McCray felt if the CRA receives funds, it helps the local economy. He thought in the future, if the Chair talks to anyone about property the Board out discuss, they should address their concerns with the Executive Director, so one Board Member will not inform the rest of the Board. He feI t uncomfortable the it contacted Mr. Aiken. He also mentioned Boynton Beach East LLC, Centennial Management was interested. Board Member McCray thought they needed to reevaluate their duties. C. Consideration and Discussion Concerning the Management of the Historic Woman's Club of Boynton Beach Mr. Simon explained this was to bring a discussion about the management style of the Woman's Club. Currently, the CRA staff is responsible for all aspects oft building. Vice Chair Katz explained the intent of the its is to explore a private entity operating the building as an event space. Since the CRA acquired the building as an event space, the Agency started receiving letters of intent from potential users of this site and he favored 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 having a partnership or contract. Board Members McCray and Penserga agreed a private operator would be best as did Chair Grant. It is a historical building, and he did not think the Board should vote on what programming to hold in the venue, nor should staff. It was similar to the Schoolhouse Children's Museum. Tom Warnke from the Surfing Museum was present. He briefly described his background and explained he is a 10-year employee of Boynton Beach working at Oceanfront Park and he has worked for 10-years for the Coastal Star newspaper and has been the Executive Director of the Surfing Florida Museum. The Museum had a temporary location in Delray Beach and Lake Park. They have been in West Palm Beach for over a year. It is filled it with surfing memorabilia. They are proud to be part of the West Palm Beach Warehouse District and their grand opening had over 650 people. He was recently approached by the Boynton Beach Historical Society to give a presentation on the 100- year history of surfing in Palm Beach County, The Museum is free as they are a non-profit. He requested the CRA allow them to prepare a proposal to have the Surfing Florida Museum as a destination attraction in the building. He was aware the CRA was charged with making the City a more dynamic location and the museum can help. They need a more permanent home and are currently on a month-to-month lease, paying a small amount, plus utilities. The room they have is up for lease for $23,000 a month. They have held more than 60 events since 2014 and in the past 12 months, had 5K attendees. Boynton Beach was founded 100 years and the Centennial is approaching. The same year, people were surfing in front of the Breakers in 1919. Surfing is now in the 2020 Tokyo Olympics in 2020 and future Olympic events. The Museum is free. The organization does not have a profit motive or paid employees. He and a social media director receive a stipend. Mr. Warnke's stipend is $17 a day or $6K a year. The Museum's partners include Discover the Palm Beaches, the Palm Beach County Cultural Council who provided grants to the Museum for four years, and the Museum is a member of the Florida Association of Museums for the last three years. Over 17 million people visited Florida last year and 70% visited a museum. He noted Boynton Beach has the Schoolhouse Children's Museum (SCM), which they would like to enhance. They have exhibited in the Museum and the Boynton Beach Library a few years ago. A few weeks ago, the Boynton Beach Historical. Society gave attendees a sampling of the Surfing Museum, although most of the presentation was historical as part of his PowerPoint presentation. The Museum could be housed in the Historic Boynton Beach Woman's Club. Mr. Warnke's, and his family's interaction with the Historical Society more than 30 years ago, when his father was Mayor, has changed to the Historical Society becoming a non- entity. There is a Historic Preservation Board and Schoolhouse Children's Museum, Women's Club, and Boynton Beach Historical Society. If Boynton Beach could, through the CRA and City Commission could come up with an umbrella effort for Historic Preservation in Boynton Beach, the Museum could be included. He envisioned the 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Women's Club having a funded exhibit of Boynton Beach History. Surfing could be included. The Gateway to the Gulfstream is not just for fishing; it is for surfing and they have the best waves int State on the Coast. They hold many events such as Surfers for Autism, they partner with cystic fibrosis, and may of the events are held at their location. He wanted the Board to allow him to present a proposal. They need a more permanent home and they have feelers out in Jupiter. Board Member McCray explained the Board had already decided to consider a management firm to manage the building. The Surfing Club was not a venture he would like to see at the Woman's Club and he would not support the use. He recalled seeing the Museum in Delray Beach. Mr. Warnke proposed the Museum be a tenant, not manager of the building. It was not the Surfing Museum held a wedding at its West Palm Beach venue. Mr. Waee explained they have a six-page policy and contract for those wanting to of private events. They do lease space out, but most events are produced by the Museum on site. They hold movie nights, yoga and painting parties, They hosted the Pine Jog summer camp for 120 students, aged 7 to 11. It helps community programming. It was recommended the Museum send a letter of intent tothe CRA, otherwise they would issue an RFP. They just want toenhance the property with their exhibit. is Chair Katz was not opposed to learning more. He liked a unique attraction. If not at this location, there is a lot of redevelopment occurring. use quality exhibits can be moved and they hold travelling exhibits. is Chair Katz supported learning more out the day-to-day management oft premises. There was consensus for the Board to issue an RFP for event management. E. Neighborhood Officer Program 4th Quarter Report for FY 2018 — 2019 Mr. Simon explained the report was submitted. Board Member McCray as about incidents from July to September. Sergeant Henry Diehl explained the legend noted that specific crime fort quarter. Board Member McCray questioned the types of crimes and wanted more specific information. Sergeant Diehl agreed to provide further statistics. Board Member Penserga asked forte definition of "other offences" and learned they were police assist calls or 911 hang-ups, being benign and non-crime related. Board Member Penserga of the reported ended on 9/30/19 and learned it was a quarterly report. Board Member McCray commented someone used a call box at Sara Sims. Sergeant Diehl explained it was the it time it occurred and this time he was there in the park, when someone used Call Box 2. The matter was closed out. There is a camera and he would check the video. Board Member Romelus suggested having a camera to view each call box. It was learned each call box was not numbered and should be numbered. Motion 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Board Member McCray moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. 15. New Business A. Consideration and discussion concerning the Purchase of the Properties Located at 209 and 217 N. Seacrest Boulevard Mr. Simon explained this was discussed with the City Manager and the property owner regarding selling the properties noted above, which is the existing post office. The 209 building is occupied by part of the Police Department, Utility billing, the E2L offices, Haskell and others. These properties were included as potential redevelopment' parcels as part of the Town Square. Since the Board selected E2L, the owners decided not to move forward with their own redevelopment project on the site and offered to sell the property. The owner ordered appraisals for the properties. The 209 N. Seacrest Boulevard property appraised for$1.4 million and the 217 N. Seacrest property appraised for $1.6 million. Staff and the City have met regarding the proposals and met with the owner about the potential redevelopment that could occur. The site could be a mixed- use project with retail and residential. It is a decision whether or not the site would be a priority acquisition. Mr. Simon advised they do not have the funds and cannot close this year, but payment could be stretched out over the terms of a lease agreement with the 209 N. Seacrest site as the lease expires May 2020. The lease with the Post Office terminates January 31, 2023. Closing could be negotiated after the lease terminates Board Member McCray queried how much money the CRA invested in the Town Square project and learned it was close to $80 million by the end of the term. He noted currently the CRA does not have the funds and CRAs are to eliminate slum and blight. He did not think it was something the CRA needed to be involved with at this time. There is supposed to be a hotel on the corner. He wanted to see who would come. He did not want to do anything right now as the CRA is in debt. Board Member Penserga favored moving forward with the acquisition as it is a prime location and the parcels are offered at appraised value. He would like to see offices or child care. He agreed the CRA did not need to have the money right now because they have the lease. He thought payment could be structured for when the time comes. Board Member McCray explained the individuals he represents tell him the CRA is putting all the money in the down town and they have not delivered in the Heart of Boynton. Vice Chair Katz asked about a hypothetical purchase agreement about distributed funds across the lease terms. Mr. Simon explained the CRA would have both properties under contract. The CRA would close on the 209 parcel and save $1.4 million between now and January 2021 or whatever date is agreed on and then begin to set aside funding for the next closing in January 2023. The CRA could easily amass the funds via new line items, future line items next year, or gathering funds from future development line items 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 .................. is is out $836K and then setting aside the balance at closing. There would be a staggered closing. He echoed some of Board Member Penserga's thoughts and queried if Mr. Simon could negotiate those terms if the Board requested. He did not want to take away anticipated development in the Heart of Boynton ort MILK Jr. Boulevard. Mike Weiner, 6111 Broken Sound Parkway, was present. Vice Chair Katz asked if there was any objection to giving 30 or 60 days to sit with staff to put some ideas together how to distribute the cost of acquisition. Mr. Weiner had no objections and commented he was thankful to be involved in the redevelopment. They purchased the property more than 10 years ago. He thought it would be a good opportunity fort C RA tooontrol it fate in the future. Chair Grant was concerned they would be spending a lot of money and do not no what the CRA would receive. They would spend $3 million totear down buildings and could purchase a building that would remain for less money. He was looking at comparable properties and Weiss Memorial Chapel was asking over $270 per square foot. The property tote west of it sold for $750K and there are lot of single-family homes there. It of take the CRA and developer to program it and it is the City's welcoming corner. The Post is has been there for 50 plus years and many people use it for their PO Box and they need that capability forte downtown. He favored moving forward, but did not want to be a landlord forte City. The CRA cannot control what the Post Office wants to do whether it wants to stay there or not. Weiss Memorial Chapel is turning into a medical marijuana dispensary. Chair Grant favored having the first right of refusal. Board Member McCray was not in favor of moving forward and spending $3M because the Heart of Boynton has been promised something for 25 years. He thought the issue of putting the HOB on the back burner again. Board Member Romelus was conflicted on the site and the expense noting that a few agenda items before, the Board refused to spend money on a different property for the same reasons the Board was discussing, which was to control the property. She understood the argument, the allocation of funds and why it was a good place to make an investment, but felt a double standard was in applied. Vice it Katz commented the Chair voted to acquire of properties. His objection to purchase one property has nothing to do with location int City. It is an ugly of Post Office that could be redeveloped versus a brand-new building is they already redeveloped. He did not see a direct comparison between the two projects. He would gladly spend $3 million on a property on MILK Jr Boulevard if someone could present $3 million would of property they could adequately redevelop that they already have not redeveloped. Would like to see financials. Motion 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Vice Chair at moved to within 60 days, if the details could be worked out, have through negotiations with staff and the property owner, more details regarding the financials presented. Board Member McCray requested when Mr. Simon brings back a report, if the CRA has to move funds around, specify what will be cut and where. Board Member Romelus seconded the motion. She wanted to include that whatever comes before the Board, for $3 million has to include affordable housing. The motion passed 4-1, (Board Member McCray dissenting.) B. Consideration of a Temporary Use Agreement between the CRA and Killebrew Inc. for the CRA-Owned Properties Located at the SW Corner of the Intersection of NE 1st Street and NE 5th Avenue within the Cottage District Site Thuy Shutt, Assistant Director, presented the its and explained the City Commission had approved the vendor conducting a pipe-bursting project, which was basically a sewer main replacement that will save the City money. The draft sets forth the obligation for Killebrew to operate and how the staging would occur. Due tote size and type of construction, it will help offset any costs the City may have to pay Killebrew if they go to a it party to rent or lease a space. Ian Lunn, Killebrew Inc., 2830 Window Lake Road, Lakeland was present. Chair Grant asked how much one the City would save if the property is used as a staging area, versus another location. Mr. Lunn explained they would save rental fees, but without a yard in the corridor, that type of construction could not be completed. Pipe bursting requires pre-disinfection of the pipe prior to installation, so it has to be relatively close because the pipe is 250 feet long. Without something in the corridor, the City would pay nearly double the construction costs. It was unlikely, with the DOT boundary tot south, that the DOT would allow it. Killebrew will take a preconstruction video to establish a baseline and restore or improve the property after the project, including sod it after. her will be a six-foot security fence to screen the site from the neighborhood. As to noise, Mr. Lunn equated the noise as typical of a construction site. An alarm of be the loudest sound made. Chair Grant not the work was needed fort Cottage District as the current utilities could not support the project. The cost to the CRA for its project was $500K. The project would ensure future capacity along NE 1st for potable water to 9th. C hair Grant supported the project and requested Killebrew create an answering service, similar to a hotline so if residents have a question, they can call or coordinate with the utilities department to use Utilities to handle calls. Mr. Lunn advised by law, they have to pass out door flyers. Board Member McCray supported the project as long as the residents are notified prior to starting the project and staying in contact for the duration oft project. There will.be some potable water interruptions. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 Motion Board Member Romelus moved to approve. Board Member Penserga seconded the motion. The motion unanimously passed. C. Consideration of 2020 CRA Board Meeting Dates Chair Grant noted there was a conflict with the January CRA meeting and Palm Beach County days on January 14t". Chair Grant, Vice Chair Katz, and Board Member Romelus would not be present and there will not be a quorum. Staff will send members the dates that are available. Motion Board Member Penserga moved to approve the remainder of the CRA Board meeting dates for the year. Board Member Romelus seconded the motion. The motion unanimously passed. D. Consideration of Accepting Transfer of Lot 14 East Martin Luther King Jr. Blvd. from the City Motion Vice Chair Katz moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. 16. CRA Advisory Board A. 2019 FRA Annual Conference CRA Advisory Board Reports Board Member Romelus commented the conference was a great refresher course since she first attended when she was elected in 2016. She liked that Tampa provided tours of their CRA districts. Attending the conference was time and money well spent. B. CRA Advisory Board Agenda - November 7, 2019 C. Pending Assignments D. Reports on Pending Assignments E. New Assignments 17 Future Agenda Items A. Consideration of Interlocal Agreement between the Boynton Beach CRA and City for Funding of CRA Furniture in City Hall 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 12, 2019 B. Consideration of Terms for the Purchase and Development Agreement with the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4th Avenue (TABLED 10/9119) C. Ocean Breeze East Update and Consideration of Purchasing Washers/Dryers for all Dwelling Units Vice Chair Katz commented the Board voted earlier for CRA staff and the Executive Director to contact the owner of the Bell property, but in wanting to address concerns about investments in Town Square or the HOB, he requested the CRA expand the effort to acquire any property on MLK Jr. Boulevard from Seacrest east so they can not only investigate whether they could acquire the Bell property, as the entire MLK redevelopment has the Centennial project on the corner as Family Dollar, and redevelopment is planned to extend to the train tracks. He wanted to be sensitive about concerns about gentrification and with a desire to give more money invested in the area, the only way to do so is to give it to existing property owners or to acquire their properties to foster redevelopment. In the effort to expand what the Board can do on MILK Jr. Boulevard, he supported widening the scope to any property that could accentuate the CRA's effort to developed that stretch of property. Chair Grant thought that buying property or doing anything with the building does not result in economic activity. Ocean Breeze East was awarded in 2017 and the ground breaking was last Saturday. It is two or more years before anything will occur. He wanted to know how to activate economic activity in the community. The CRA has activated activity through Rock the Plaza events. Family Dollar was surrounded by six other convenience stores. He felt it was working with property owners to spur activity. Vice Chair Katz had no problem with any discussion to expand activities to MLK or adjacent areas. It is a residential street now, and he was open to ideas to foster greater economic activity, but it is hard to image with redevelopment. There needs to be a discussion to ensure the Board is not choosing one area over the other. Board Member Romelus agreed with the perception and the FRA Conference discussed how the Board can be better stewards. The Board should read up about gentrification and how the government plays a key role in it. She recommended "How to Kill a City" and "Happy City." She felt the books represented her views. 18. Adjournment Motion There being no further business to discuss, Board Member Romelus moved to adjourn. Board Member McCray seconded the motion. The motion unanimously passed. The meeting was adjourned at 9:01 p.m. Catherine Cherry Minutes Specialist 19